By electronically connecting the Issuer and Investor through the use of global standards, the 'Issuer to Investor: Corporate Actions' initiative aims to ensure the Issuers' intention and information are accurately and effectively delivered, while driving towards complete straight-through-processing sought by the investing community.
What’s the Problem?
Approximately 200,000 corporate actions such as dividends, bond redemptions, and mergers are announced each year by publicly traded companies and other issuers or offerors in the U.S. alone. Most of these announcements still require many manual steps, making the process error-prone, time-consuming and costly. These issues have a negative impact on investors across the financial community.
What’s the Solution?
To help mitigate the risks and drive down the costs of corporate actions processing, DTCC, SWIFT and XBRL US have joined forces to implement a solution. This initiative builds on the work undertaken globally to promote existing ISO (International Organization for Standardization) standards for corporate actions and integrates the benefits of XBRL. The collaboration promotes straight-through-processing by capturing data directly from issuers at the point that a corporate action is announced and in standardized format.